Car financing was a tedious task in the past but in recent times, a number of flexible schemes have been introduced by several banks and financial firms present in India. These schemes and proposals cater to the loan requirements of a large group of individuals, be it from an agricultural sector, corporation background or self-employed. The schemes and their clauses vary according to the financial background of people and the amount of loan, which is being borrowed. Certain new services have also made it feasible for Non-Resident Indians (NRIs) to avail the benefits of car loans. The NRI car loan facility is available through almost all the major banks and financing corporations and the same can be availed according to people's preferences.
Any employed personal can buy new car or a used model at present by getting it financed through the concerned department. For NRIs, these clauses are usually different than those for the other citizens of the nation. An NRI cannot be considered an applicant and is designated a guarantor, meaning the vehicle will not be in his name. They are required to have a co-applicant (Indian resident), on whose name they will acquire the loan. Unlike the normal guarantor, the NRI guarantor has to pay regular EMIs from his/her valid bank account. The NRI car loan eligibility has few clauses and policies, which vary according to the banks. These clauses generally include the following:
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Guarantor must be an NRI and applicant should be a valid Indian resident.
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The age of both applicant and guarantor must be between 21-65 years.
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The entire amount of loan borrowed is repaid before the guarantor reaches the age of 65 years.
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The applicant has to be a relative of the NRI guarantor and needs to produce the documents, which verify the same.
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The NRI has to possess all the valid documents, including the passport and work permit.
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The guarantor needs to have a bank account with the concerned bank for at least 1 year before he/she can finally apply. Furthermore, they also need to maintain a balance of sum Rs. 50000 in the account during this tenure.
The guarantor is also asked to have a steady work source and should be employed abroad for at least 2 years. After producing all the documents, the verification is done by the concerned authority and the loan is sanctioned. The NRI auto loans allow people to borrow a sum of up to 18 times their net monthly income and also have special interest rates for them. Furthermore, most of the banks generally have their own list of countries where an NRI must be residing in order to get the loan. The same should be enquired from the financing firm before the loan is applied. Also, it must be enquired if any security is needed in case of NRIs and what all things can be produced to ensure the same.
Car loan for NRIs include normal documentation, apart from producing their valid visa and passport. The customer-bank relations are also significant in such cases as they make the loan acquiring process more easy. It is advised to the NRIs that before applying for the loan, they should check and compare the rates of interest offered by various banks. The schemes are highly flexible and allow the applicants to enjoy special privileges, such as extended warranty and other rewards.
